In a new escalation aimed at cutting off funding to armed groups in Yemen, the administration of US President Donald Trump issued a wide-ranging package of sanctions on Friday targeting the Houthi group's complex financing networks. The US Treasury Department's Office of Foreign Assets Control (OFAC) announced that the sanctions targeted 21 individuals and entities, as well as one vessel, involved in facilitating the group's financial and logistical activities.
Targeting the “Paradise of Rivers” in the UAE
Among the most prominent entities sanctioned is Janat Al Anhar General Trading LLC, registered in the United Arab Emirates. Intelligence and financial reports indicate that this company represents a vital link in the Houthi financial chain outside Yemen.
According to informed sources, the company does not engage in traditional commercial activity so much as it functions as a clearinghouse for black market money transfers. The company's accounts are used to launder funds injected by traders linked to the group to purchase smuggled goods, sensitive spare parts, technical equipment, and even shipments suspected of being related to weapons, originating from China and other Asian countries. This mechanism allows the Houthis to manage massive financial flows outside the formal banking system, making them extremely difficult to trace.
Context of the conflict and the Red Sea crisis
These sanctions come at a time of unprecedented tension in the region, as the Houthis continue to launch attacks on commercial ships in the Red Sea and the Bab al-Mandab Strait, attacks which the group justifies as solidarity with the Gaza Strip, while Washington and its allies see them as a direct threat to freedom of navigation and global trade.
Historically, the group has relied on a complex network of intermediaries and shell companies spread across the region to circumvent international sanctions, enabling it to import fuel and military equipment and develop its missile and drone capabilities, which now threaten regional security.
The strategic importance of sanctions and their impact
This decision carries significant political and economic implications on several levels:
- Locally: The sanctions aim to weaken the Houthis' financial ability to pay their fighters' salaries and fund the war effort, which may contribute to reducing their military operations inside Yemen.
- Regionally: The inclusion of a UAE-based company on the list demonstrates close security and intelligence coordination to pursue illicit funds, even those attempting to hide within the economies of countries allied with the United States.
- Internationally: Washington is sending a firm message that the global financial system will not be a safe haven for those who finance attacks that threaten global supply chains.
Official US position
Commenting on the decision, U.S. Treasury Secretary Scott Bisent stated, “The Houthis threaten the United States by committing acts of terrorism and attacking commercial vessels transiting the Red Sea.” The Treasury Department affirmed that this move complements a series of economic pressures aimed at dismantling the smuggling and revenue-generating networks that enable the group to destabilize the region.
